Two members have resigned from the Code Committee of industry representatives that is working on the Code of professional conduct for financial advisers.

The Commissioner for Financial Advisers Annabel Cotton has accepted the resignations of Code Committee members Liz Koh and Patrick Middleton.

Koh and Middleton were attached to firms that gave advice that was ranked "rejected" in the recent Consumer New Zealand report on the financial advice industry.

Cotton says she accepted their resignations to remove the potential for loss of public confidence in the work of the Code Committee, not as any reflection on the professional competence of Koh, Director of Moneymax,  Middleton, former Head of Wealth Management at Westpac or either of these companies.

The Commissioner understands that both Moneymax and Westpac do not accept the findings of the Consumer survey.

"My paramount concern is ensuring that the public have confidence in the Code of Conduct for financial advisers. I am not making any judgement on the quality of advice given by any person or firm, or on Consumer's conclusions about that advice," she says.

The Code Committee was appointed by Ms Cotton in July 2009 to develop and maintain the Code of Conduct, which will form an important part of the new regulatory environment for financial advisers.

"The draft Code is expected to be completed early next year and will reshape the industry by setting minimum qualification standards, ongoing training requirements, and impose responsibilities for the advice given to clients," Ms Cotton says. The new regulatory regime for financial advisers is expected to be in force the end of 2010.

NEXT STORY: Cotton explains why Code Committee members forced to resign